A certificate of lis pendens is intended to provide notice of pending litigation in respect to a particular parcel of land.
When you see a certificate of lis pendens registered on a property title this usually means that the property owner has been sued, but there is no judgment yet. This registration of a certificate of lis pendens protects the plaintiff’s interest in the land while the seller loses the ability to deal in the proper t y freely.
The registration of a certificate of lis pendens is also expressly authorized by the Builders’ Lien Act and the Matrimonial Property Act . As such, it is common to see these registrations on title in relation to trades disputes, or family law matters.
If the court rule s in favor of the plaintiff who took action to register a certificate of lis pendens, a writ may then be registered on the property title.
The registration of a writ indicates that the lawsuit has been awarded and the plaintiff now has a cemented interest in the property. Should this arise in the course of buying real estate a seller will need to have these registrations discharged before, during or after closing as the new buyer will not under proper direction from their lawyer accept these registered interests.
As a home buyer, the Realtor® you choose to work with on your home buying journey may complete an initial review of the title prior to your offer going firm.
Should you come across a certificate of lis pendens, writ or caveat registration during an initial review it is always best practice to bring it to your lawyers attention as soon as possible. To view these registrations on the surface may not offer a clear idea of the timeline required to have them discharged (if necessary) and these detai ls may only become apparent under further review by your real estate lawyer.
Questions about registrations on your Certificate of Title? Contact our real estate lawyers today.
